Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) experienced significant stock price movement in 2023, from a 52-week low to a high by year-end, driven by AI advancements and its dominant market position. In 2024, Alphabet faces challenges including the phasing out of third-party cookies in Chrome ("Chrome-ageddon") and an ongoing antitrust lawsuit over Google's search engine practices. Despite these issues, Alphabet's strong Q3 financials, the growing digital advertising market, and potential in AI suggest that the stock could be a compelling long-term investment. However, investors should note that Alphabet was not listed among The Motley Fool's top 10 stocks to buy now.
As the AI sector continues to grow, two stocks, Snowflake and Oracle, present buying opportunities after significant declines from their all-time highs. Snowflake, down 54%, offers a Data Cloud platform that enhances data sharing and analytics, crucial for AI development, and has shown strong financial growth. Oracle, down 19%, is a legacy tech company whose cloud infrastructure services are increasingly in demand for AI applications, with plans to expand its data center footprint significantly. Both companies are poised for growth in the anticipated AI bull market.
Wall Street analysts predict significant growth for four high-yield dividend stocks in 2024, with expected increases of 45% or more. These stocks include Sasol Ltd with a 9.2% yield, Vodafone Group with a 10.9% yield, Crescent Point Energy with a 4.3% yield, and Icahn Enterprises with a 22.3% yield. Despite their high yields, these companies have experienced stock price declines, leading to attractive valuations and bullish analyst targets. However, the article suggests that investors might find better opportunities elsewhere, as these stocks are not included in The Motley Fool's Stock Advisor top 10 recommended stocks.
Medical Properties Trust (NYSE: MPW) stock dropped 29% after news of rent collection issues with its largest tenant, Steward Health Care System, which is facing financial difficulties. MPT is facing potential write-offs of around $350 million and may engage in legal actions to recover losses. Given the uncertainty and potential for lengthy litigation, the stock is not considered an attractive investment at this time, and it was not recommended by The Motley Fool's Stock Advisor service.
Verizon Communications (NYSE: VZ) is highlighted as a potentially undervalued dividend stock in the competitive telecommunications sector. Despite facing challenges like increased competition and customer churn, Verizon has maintained strong free cash flow, enabling it to increase its dividend for the 17th consecutive year. With a high dividend yield and a forward price-to-earnings (P/E) ratio significantly below its 10-year average and those of competitors, Verizon presents an attractive opportunity for passive income investors, especially as the stock appears cheap going into 2024. However, it's worth noting that Verizon was not listed among the top stock picks by The Motley Fool's Stock Advisor service.
The article discusses investing $125,000 across four high-yield dividend stocks—Rithm Capital, Altria, Verizon Communications, and AT&T—to potentially generate $10,000 in passive income in 2024. Rithm Capital offers a 9.7% yield, Altria 9.5%, Verizon 6.8%, and AT&T 6.4%. Each company presents unique opportunities and challenges, such as Rithm's position in a high-interest rate environment, Altria's diversification into smokeless tobacco and vaping, Verizon's robust free cash flow despite a competitive market, and AT&T's revenue growth and debt reduction despite a recent dividend cut. The article suggests that these stocks could be undervalued and provide a steady income stream for investors.
Walgreens Boots Alliance (NASDAQ: WBA) has announced a significant dividend cut, ending a 47-year streak of dividend growth, to retain cash for funding growth and strengthening its balance sheet. Despite a rich history of dividends, the company's financials have deteriorated, with a downgrade in bond ratings and expectations of continued earnings decline. The dividend cut is seen as a difficult but necessary decision to improve financial stability. Investors are now considering whether the lower stock price presents a buying opportunity for a company still offering a decent dividend yield.
Parkev Tatevosian from Fool.com recommends purchasing 75 shares of a particular dividend stock for those looking to generate $500 in passive income, suggesting it as a safe investment option. However, the article also mentions that McDonald's, while a well-known dividend stock, is not currently on The Motley Fool Stock Advisor's list of top 10 stocks to buy. The Stock Advisor service, which has outperformed the S&P 500 since 2002, offers investment guidance and new stock picks each month. Tatevosian discloses his affiliation with The Motley Fool and potential compensation for promoting their services, but maintains that his opinions are his own.
SoFi Technologies (NASDAQ: SOFI) is highlighted as an ultimate growth stock to consider buying with $500, due to its strong performance in a growing fintech industry, effective management, and competitive edge with a user-friendly digital platform. Despite the economic pressures, SoFi has shown significant growth, with a 27% year-over-year revenue increase and a 47% increase in member signups. The company is still reporting net losses but shows promising signs with increased adjusted EBITDA and profitability in all business segments. SoFi's stock soared by 125% in 2023, and with the expectation of net profit in Q4 2023, it is suggested as a valuable investment for potential long-term gains.
SoFi Technologies' stock experienced a significant drop after an analyst downgraded the company's rating and lowered the price target. Despite SoFi's revenue growth and member base expansion, its long-term earnings potential remains uncertain, leading to a speculative valuation. The stock trades at a low price-to-sales ratio but a high forward price-to-earnings ratio, making it potentially attractive to risk-tolerant investors. However, it may not be suitable for those averse to volatility. The Motley Fool's Stock Advisor service did not include SoFi in its top 10 recommended stocks, suggesting there may be better investment opportunities available.
SoFi Technologies' stock experienced a significant drop after investment bank Keefe, Bruyette & Woods downgraded the company, citing potential revenue and EBITDA figures below consensus forecasts. Despite the possibility of SoFi achieving its first-ever profit, concerns about sustainability and the reality of a net loss in 2024 influenced the stock's decline. However, analysts remain optimistic about SoFi's growth prospects in the coming years, with expectations of positive profits in 2025 and significant earnings growth thereafter. The article suggests that SoFi's future growth potential may still make it an attractive investment despite current setbacks.
Nikola Corporation, once a hyped electric-truck maker, has faced significant challenges including a substantial net loss, a cash crunch, and the conviction of its founder for misleading investors. Despite a new partnership with FirstElement Fuel and plans to raise capital through stock and bond sales, the company's future remains uncertain. Investors are wary of the potential for further share-value dilution and the company's ability to sustain operations, making Nikola stock a risky and unconfident pick for prudent investors.
Heading into 2024, three growth stocks are highlighted as strong buys: Salesforce, a leader in CRM software solutions with a focus on AI and strong financials; Albemarle, the world's largest lithium producer with a robust balance sheet and promising sales growth despite recent market fears; and Symbotic, an AI-powered warehouse automation company with a significant backlog and new revenue streams on the horizon. These companies are poised for growth, making them attractive investment opportunities for the coming year.
Palantir Technologies (NYSE: PLTR) experienced significant growth in 2023, with its stock price increasing by over 170%. The company's success is attributed to the rising demand for AI and cloud computing. In 2024, Palantir could continue to prosper due to the expected increase in AI adoption, potential interest rate cuts by the Federal Reserve, and its recent profitability which may lead to inclusion in the S&P 500. Despite a poor performance in 2022, Palantir's diverse operations and growth prospects make it an attractive investment for the future. However, it's worth noting that Palantir was not listed among the top 10 stocks recommended by The Motley Fool's Stock Advisor.
Advanced Micro Devices, Inc. (NASDAQ:AMD) has seen a significant price increase on the NASDAQGS, trading close to its 52-week high. The stock appears to be fairly priced at around 12.22% above its intrinsic value, suggesting a limited downside. With high expected profit growth and potential for higher cash flow, the future looks promising for AMD. However, the current share price reflects this optimism, meaning it may not be the best time to buy for those seeking a bargain. Investors should consider other factors, such as the company's financial strength and potential risks, before making a decision.
